Quote:
Originally Posted by Der Fuhrer
SS was a fail idea purposed by a fail president. It was doomed from the start. A simple glance at a population distribution graph of nearly any developed country would have shown that SS was fucked many years ago.
I see the problem with privatizing SS in that dumbass people would "gamble" with their money and loose, but if you could limit the securities that people could buy to low-risk (or risk-free) and small, yet stable return for the long haul, wouldn't it be a better system than what we have now? Let's face it, it's a broke ass system that needs fixed. Anything would be better, even nothing at all.
These god damn old people are bleeding us dry, not just with SS, but medicare, too. And the sad thing is, most of them are probably senile, like my grandparents.
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A couple of things you seem to be ignoring here:
SS was made at a time when life expectancy was MUCH lower. People weren't expected to have 30 year retirements like they are now. Our failure has been to keep the age people can receive SS low while the life expectancy has dramatically risen.
Limiting the securities people can invest in doesn't solve the problem. That system would be dramatically inefficient in terms of transaction costs and diversification. If you want a social safetynet it's SIGNIFICANTLY better to have the assets pooled together where experts can extract the most value from them with the fewest transaction costs. There are also a tremendous number of investments that can only be done with scale - small mom and pop investments can't underwrite an insurance policy - just one example.